Lepus has issued bonds of $100 nominnal value with annual interest of 9%per year, based on the nominal value .the current market price of the bond is ¢90 what is the cost of the bond?
Q: Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds…
A: Yield to maturity is defined as the total return, which used to get anticipated on the bond when the…
Q: O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal…
A: Nominal Coupon interest Rate = Annual Interest / Bond Par Value Present Value of cash flows =…
Q: Eastern Corporation has $1,000 par value bonds with 4 years to maturity. The bonds pay an 8% coupon…
A:
Q: Volbeat Corporation has bonds on the market with 30 years to maturity, a YTM of 6.2%, and a current…
A: Using excel PMT function
Q: Ibra Fabrics Inc. has issued 30-year semiannual coupon bonds with a face value of OMR 1,000. If the…
A: Given: Face value =$1000Annual coupon rate =10%Current yield to maturity =12%Year of maturity =30
Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 6% semiannual coupon, 13 years to…
A: In the given question we require to calculate the bond's price from following details: Par value of…
Q: Merton enterprises has bonds on he market making annual payments, with 1 years to maturity and…
A: In the given problem we require to calculate the coupon rate on merton's bonds using following…
Q: McConnell Corporation has bonds on the market with 15.5 years to maturity, a YTM of 6.2 percent, a…
A: Coupon rate:The coupon rate is the rate of yield provided by the fixed-income securities and it is…
Q: ACB Products has a bond issue outstanding with 8 years remaining to maturity, a coupon rate of 10…
A: Par value = $1000 Coupon rate = 10% Coupon amount = 1000*0.10 = $100 Years to maturity = 8 Years…
Q: what is the current bond price?
A: Bond valuation is the method of finding the fair value of the bond. Fair value means the present…
Q: What is the yield to maturity at a current market price of $876? Round your answer to two decimal…
A: Bond Par Value = $1,000 Time to Maturity = 4 years Coupon Rate = 10% Using the fomula:…
Q: what is the YTM?
A: YTM is that rate where investor earns total return on a bond if he holds the bond till maturity. It…
Q: Fish & Chips Inc. has two bond issues outstanding, and both sell for $701.22. The first issue has an…
A: Please find the answer to the above question below:
Q: arshall Company is issuing eight-year bonds with a coupon rate of 7.85 percent and semiannual coupon…
A: Data given : Face value of bond =$1000 (assumed) n= 8 years x 2= 16 periods ( as payment is made…
Q: Draiman Corp has bonds on the market with 14.5 years to maturity, a YTM of 5.3%, a par value of…
A: Years to maturity = 14.5 Years Number of semi annual payments (n) = 14.5*2 = 29 YTM = 5.3% Semi…
Q: Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds…
A: Part a 1: Time period = 4 years Coupon Rate = 9% Par value = $1000
Q: The Petit Chef Co. has 10.8 percent coupon bonds on the market with eight years left to maturity.…
A: total percentage = 10.8% n = 8 years par value = 1000 bond price = 1129.70 here
Q: Ashes Divide Corporation has bonds on the market with 14.5 years to maturity, a YTM of 6.8 percent,…
A: Bonds are debt instruments carrying fixed interest payments and a predefined redemption value. Bonds…
Q: StormTech has S1,000 convertible bonds with a coupon rate of 10% paid annually, that has 10 years to…
A: Straight Value of bond = Present value of interest + Present value of maturity value OR Straight…
Q: Comet Chasers has a bond outstanding that sells for $1,052 and matures in 22 years. The bond pays…
A: Excel Spreadsheet:
Q: Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds…
A: Given:
Q: Pfizer Manufacturing just issued a bond with a $1,000 face value and a coupon rat of 8%. If the bond…
A: Face value = $1000 Coupon rate = 8% Annual coupon amount (C) = 1000*0.08 = $80 Years to maturity (n)…
Q: Kenny Electric Company's noncallable bonds were issued several years ago and now have 20 years to…
A: Using excel rate function
Q: Harrimon Industries bonds have 6 years left to maturity. Interest is paid annually, and the bonds…
A: Calculating YTM using excel rate function
Q: Walker Industries has a bond outstanding with 12 years to maturity, a 9% coupon paid annually, and a…
A: Yield to call referred as return that the holders of the bonds received when the bond is held by…
Q: Happy Valley Corporation has bonds on the market with 14.5 years to maturity, a YTM of 6.1%, face…
A: Intrinsic value of bond is the value which a bond holder will get from holding the bond. To…
Q: Wesimann Co. issued 15-year bonds a year ago at a coupon rate of 8.7 percent. The bonds make…
A: Calculation of Current Bond Price:The bond is issued a year ago so the bond duration is 14 years.The…
Q: ABC Company is issuing an issue of bonds with a 10-year m aturity, a RM1,000 par value, a 12 percent…
A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…
Q: Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 8.4%…
A: YEILD to call is discount rate at which present value of callable value and coupon value equal to…
Q: O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal…
A: Given the following information: Face value (M): $1,000 Selling price (P): $850 Yield to Maturity:…
Q: Lanker Enterprises has bonds on the market making Monthly payments, with 16 years to maturity, a par…
A: Face Value = 1000 Price = 1154.49 Time to maturity = 16 years i.e. 192 months Yield = 12% Monthly…
Q: Five years ago, Jolly company sold at par a $1,000 bond with a coupon rate of 8 percent and 20 years…
A: Using excel PV function
Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 11% semiannual coupon, 6 years to…
A: BondIt is the instrument of the indebtedness of an issuer of the bond to the holders of the bond.
Q: Luna Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal…
A: Using Financial Calculator, PV = -882.72 FV = 1000 n = 25*2 =50 I/Y = 7/2 = 3.5
Q: Expected return %_________________
A: Coupon rate of interest = 7.33%*6/12 = 3.665% per period…
Q: Gabriele Enterprises has bonds on the market making annual payments, with 5 years to maturity, a par…
A: coupon amount is the amount a bond issuer pays to the bondholder during the life of the bond. It is…
Q: Keenan Industries has a bond outstanding with 15 years to maturity, an 8.25% coupon paid…
A: Information provided: Face Value (FV) = $1000 Annual YTM = 6.75% Semi-annual YTM (r ) = 6.75%/2 =…
Q: Harrimon Industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds…
A: Therefore, the YTM at market price of $879 is 13.07% and at market price of $1,123 is 5.49%.
Q: Glacier Industries has bonds on the market making annual payments, with 14 years to maturity, and…
A: A coupon is a periodic amount paid by the bond issuer to the bond holder as a fixed percentage of…
Q: Nesmith Corporation's outstanding bonds have a $1,000 par value, a 6% semiannual coupon, 11 years to…
A: Par value (F) = $ 1000 Coupon rate = 6% Semi annual coupon amount (C) = 1000*0.06/2 = $ 30 Years to…
Q: Too Young, Inc., has a bond outstanding with a coupon rate of 7.3 percent and semiannual payments.…
A: using excel rate function
Q: Page Enterprise has bonds on the market making annual payments, with 9 years to maturity, and…
A: We require to calculate the coupon rate using following details in this question: Present value…
Q: Nikita Enterprises has bonds on the market making annual payments, with eight years to maturity, a…
A: Coupon rate means the yield paid to the investor by fixed-income security. In simple coupon rate is…
Q: Harrimon Industries bonds have 6 years left to maturity. Interest ispaid annually, and the bonds…
A: YTM stands for yield to maturity. It is the total rate of return which an investor earns from the…
Q: Nikita Enterprises has bonds on the market making annual payments, with eight years to maturity, a…
A: Using excel PMT function Where NPER = Year's to maturity PV = Price of bond FV = face value Rate =…
Q: HKABC Limited. has bonds on the market with 13 years to maturity, a yield-to-maturity of 9.2…
A: Working note:
Q: Rhiannon Corporation has bonds on the market with 16.5 years to maturity, a YTM of 7.7 percent, a…
A: Solution- Number of periods = 16.5 * 2 = 33 Rate = 7.7% / 2 = 3.85% price = Semi annual coupon…
Q: Radomski Corporation's bonds make an annual coupon interest payment of 7.35%. The bonds have a par…
A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Fingen's 12 yr, $1000 par value bonds pay 9% interest annually. The market price of the bonds is $1110 and the market's required yield to maturity on a comparable-risk bond is 6%. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond?Suppose that you have purchased a EUR bond issued by Deutsche Bank. At the time of the purchase, the price of the bond was EUR 98.5M. The bond matures in 3 years, pays a fixed 5% coupon bond, and has a face value of EUR 100M. That is the expected YTM in USD if the spot rate is USD 1/EUR, F1 is USD 1.12/EUR, F2 is USD 1.15/EUR, F3 is USD 1.18/EUR? Please enter your answer as % -- e.g. if your answer is 2.34% type in 2.34.Suppose you purchased one of SWH's bonds on the day it was issued. The bond had a coupon rate of 5.5% (paid semiannually), the par value of $1,000, and a 15-year maturity. The investors' required rate of return at the time of issue was 5.5%. How much would you have paid to purchase the bond? Vb = $1,000 ✔Assume that immediately after you purchased the bond, the market conditions changed, so the investors' rb increased from 5.5% to 6.5%. How would the value of your bond be affected? Vb ↓ to $905.09 ✔What would happen to the bond price if rb decreased from 5.5% to 4.5% immediately after the bond was issued? Vb ↑ to $1108.23 Please make sure your answer is correct. Don't answer if you are not sure. don't use chat gpt as well. Thank you
- Baywa has an outstanding bond that has a coupon rate of 8.3%. What is the market price of this bond if it pays interest semiannually, has 15 years to maturity, and the current required rate of return is 9% on bonds of similar quality? a. $954 b. $1059 c. $1,000 d. $943Bond X is a premium bon making annual payments. The bond pays 8% coupon, has YTM of 6% and has 13 years to maturity. Bond Y is a discount bond making annual payments. This bond pays a 6% coupon, has an YTM of 8% and also has 13 years to maturity. The nominal value of both bonds is £1,000. What are the prices of these bonds today? If interest rates remain unchanged, what do you expect the prices of these bonds to be in one year? In three years? In eight years? In twelve, thirteen years? What is going on here? Illustrate your answers by graphing bond prices versus time to maturity.EZ Marketing Inc., has two bond issues outstanding, each with a par value of $1,000. Information about each is listed below. Suppose market interest rise 2 percentage point across the yield curve. What will be the change in price for each of the bonds? Does this tell us anything about the relationship between time to maturity and interest rate risk? (Bonds make annual coupon payments) Bond A: 5 years to maturity, 8 % coupon, market interest rate is 9 percent. Bond B: 12 years to maturity, 8% coupon, market interest rate is 9 percent.
- q1. Alphabet Pty recently issued 25 million bonds with a face value of $8,000 each. The coupon rate of the bonds is 7% p.a., paid semi-annually. The bonds have a maturity of 150years, and bonds of similar risk pay a yield to maturity of 5% p.a. semi-annually. For what price does each bond sell currently? Enter your answer to the nearest cent (two decimal places). q2.If the yield of the Aplhabet bonds go up in the next few years, what would happen to the price? Explain.Buner Corp’s outstanding bonds, which has a face value of $1,000, have 6 years remaining to maturity. The bond’s coupon rate of interest is 8%, and interest is paid semiannually. If investors require a rate of return equal to 6% to invest in similar risk bonds, what should be the market price of Buner’s bond?Ashes Divide Corporation has bonds on the market with 14.5 years to maturity, a YTM of 6.8 percent, and a current price of GH¢924. The bonds make semiannual payments. What must the coupon rate be on these bonds?
- Kiss the Sky Enterprises has bonds on the market making annual payments, with 11 years to maturity, and selling for $960. At this price, the bonds yield 11.0 percent. What must the coupon rate be on the bonds?Oscorp has just issued its Norman special long bond. The bonds have a maturity of 25 years, a coupon rate of 0.50% and pay the coupon on a semi-annual basis. The face value is the bond is $1000.00. The bonds are trading at a price of $361.85. What is the YTM at which these bonds are being traded?A Macrohard Corp. bond carries an 8% coupon, paid annually and has 10 years to maturity. The par value is $1000 and the required rate of return is 5%. a) Calculate the price of the bond today (P0) b) Is this a discount or premium bond? Explain? c) Calculate the price of the bond one year from now (P1) d) If you buy the bond today and sell it one year from now, calculate i) Current yield ii) Capital gains yield iii) Total rate of return (yield)